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    Expansion vs. raising price of product and the risk

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    Please explain why expanding production facilities would involve greater business risk than raising the price of the product.

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    https://brainmass.com/business/finance/expansion-versuss-raising-price-product-the-risk-308505

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    Please explain why expanding production facilities would involve greater business risk than raising the price of the product.

    Capital budgeting involves taking decisions about the long term assets mix of the organization. Capital budgeting decision is surrounded by risk factors. Risk in capital budgeting may be defined as the variation of actual cash flows from the expected cash flows. ...

    Solution Summary

    The response discusses the expansion versus raising price of product and the risk.

    $2.19

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